Study questions Pentland Project feasibility: Mackay Sugar

A group involved with a feasibility study into a proposed agricultural and power precinct in north Queensland says the study has found the project is unlikely to come to fruition.

Kennedy MP Bob Katter has proposed the large-scale Pentland Project that would include a baseload power station and irrigated agriculture precinct west of Townsville.

Mackay Sugar had been approached to run Australia's biggest sugar mill on the site as part of the development.

The company was one of 10 groups on a steering committee looking into the project's feasibility and it says the study found it is unlikely it would come to fruition without strong incentive from the Federal Government.

The company says given the study's findings, it would need more certainty on issues such as suitable land and water costs before committing to further involvement.

Mr Katter says the the region would be worse off if the project did not go ahead.

"North Queensland would be left with no economic development," he said.

The study has been completed and is now with the Federal Government for consideration.

The Government says any decision regarding the release of the report will be taken once it has been considered.